Hawks secure guilty plea in nearly R4.7m VAT fraud case in Gqeberha

A Gqeberha businessman has pleaded guilty to charges arising from a scheme to claim nearly R4.7 million in fraudulent VAT refunds, according to The Citizen. The guilty plea came in the Gqeberha Specialised Commercial Crime Court on 18 August 2026.

Who was charged and what the court heard

According to The Citizen, 54-year-old Sipho Christian Tys, sole proprietor of Lisolanele Trading Enterprises CC, pleaded guilty to charges of fraud, forgery and contraventions of the Tax Administration Act.

Allegations and how they were uncovered

The Citizen reports that investigators say the fraud involved fraudulent VAT returns submitted via the South African Revenue Service (SARS) e-filing system between 2015 and 2017. Those returns were reportedly supported by fabricated invoices and bank statements.

The irregularities were identified during a SARS audit, which led to an investigation by the Hawks’ Serious Commercial Crime Investigation unit in Gqeberha, The Citizen says.

Arrest, bail and next steps

The Citizen states that Tys was arrested in 2021 and released on R5 000 bail, and that he made several court appearances before entering his guilty plea on 18 August 2026. The matter has been postponed to 16 October 2026 for sentencing, The Citizen reports.

Hawks response

Hawks spokesperson Ndiphiwe Mhlakuvana is quoted in The Citizen describing the case as demonstrating the unit’s determination to tackle financial crime. He said:

“Our investigation revealed a deliberate pattern of documentary manipulation and fraudulent tax reporting. This was not a minor lapse – it was a calculated scheme to defraud the state.”

Mhlakuvana added:

“The Hawks will continue to work closely with SARS to ensure that those who manipulate tax systems for personal gain face the full might of the law.”